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4 years ago

The increase in international trade in the united states is partly due to

1 answer:

3 0

The United States' increase in international trade is partly due to different factors. Some of these factors are the improvements in transportation, which we know give access to the deliveries of the different trade products and travelling to the area of origin is already easy. The advancement in telecommunications also provides an increase in trade since relaying information is faster than before, this means different instructions and specifications and even gathering orders from far places can be easily sent and received. And another one is the increasing trade of goods with a higher value per pound. High value gives more profit and income tot he trade industry.

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Magnus Tech owns 30% of Mirika Inc. and accounts for the investment using the equity method. During the year, Mirika reports a n

Sindrei [870]

Answer:

A. The investment decreases by $771,000

Explanation:

As per the question the following details are given below :-

Net loss = $2,500,000

Total Dividend = $70,000

Owning Percentage = 30%

The computation of during the year is given below:-

Net loss + Total Dividend x Owning Percentage

= ($2,500,000 + $70,000) x 30%

= $2,570,000 x 30%

= $771,000

So, the Magnus investment in Mirika inc. reduces by $771,000

5 0

3 years ago

Which step in the decision-making process would help you in deciding how much money you want to make at work?.

OlgaM077 [116]

Answer:

Define your wants and needs

3 0

3 years ago

An Interest Only Strip holder benefits from _____ than expected prepayments, and a Principal Only Strip holder benefits from low

xenn [34]

An Interest Only Strip holder benefits from higher interest rates than expected prepayments, and a Principal Only Strip holder benefits from lower than expected prepayments and interest rates.

<h3>What is the difference between Principal Only (PO) Strips and Interest Only (IO) Strips?</h3>

The holders of PO strips benefit when the investment period is cut short because they will only ever see the face value of their investment.

In order for the mortgage holders in the pool to continue making payments (including interest) on their current loan rather than attempting to refinance into a new one, they want to see interest rates at the same level or higher.

Therefore, A principal only strip holder benefits from lower than anticipated prepayments and interest rates, while an interest only strip holder benefits from higher interest rates than anticipated prepayments.

Learn more about the interest rates, refer to:

brainly.com/question/13324776

#SPJ1

3 0

2 years ago

If a company has five employees with annual salaries of $40,000, $90,000, $40,000, $30,000, and $80,000, respectively, what is t

inessss [21]

Mean is where you add all of the values together and then divide the total by the number of values.

After doing this, you should see this...

20,000+40,000+20,000+60,000+70,000 = 210,000

After you get this number, you divide by the number of values, in this case, 5.

210,000/5 = 42,000

6 0

3 years ago

The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $940,000,

Tanya [424]

Answer:

a. Year 0 Net Cash Flows = $984,000

b. We have:

Year 1 net operating cash flows = $306,159

Year 2 net operating cash flows = $332,986

Year 3 net operating cash flows = $261,479

c. Additional Year 3- cash flow = $504,877

d. The machine should be purchased.

Explanation:

We start by first calculating the following:

Initial Investment = Base Price + Modification Cost = $940,000 + $25,000 = $965,000

Useful Life = 3 years

Depreciation in Year 1 = 0.3333 * $965,000 = $321,634.50

Depreciation in Year 2 = 0.4445 * $965,000 = $428,942.50

Depreciation in Year 3 = 0.1481 * $965,000 = $142,916.50

Book Value at the end of Year 3 = $965,000 - $321,634.50 - $428,942.50 - $142,916.50 = $71,506.50

After-tax Salvage Value = Salvage Value - (Salvage Value - Book Value) * Marginal tax rate = $624,000 – ($624,000 - $71,506.50) * 25% = $485,877

Initial Investment in NWC = $19,000

We can now proceed as follows:

a. What is the Year 0 net cash flow?

Year 0 Net Cash Flows = Initial Investment + Initial Investment in NWC = $965,000 + $19,000 = $984,000

b. What are the net operating cash flows in Years 1, 2, 3?

Year 1 net operating cash flows = (Pretax Cost Saving * (1 - tax)) + (tax * Depreciation in year 1) = ($301,000 * (1 – 0.25)) + (0.25 * $321,634.50) = $306,159

Year 2 net operating cash flows = (Pretax Cost Saving * (1 - tax)) + (tax * Depreciation in year 2) = ($301,000 * (1 – 0.25)) + (0.25 * $428,942.50) = $332,986

Year 3 net operating cash flows = (Pretax Cost Saving * (1 - tax)) + (tax * Depreciation in year 3) = ($301,000 * (1 – 0.25)) + (0.25 * $142,916.50) = $261,479

c. What is the additional Year 3- cash flow (i.e. after tax salvage and the return of working capital)?

Additional Year 3- cash flow = NWC recovered + After-tax Salvage Value = $19,000 + $485,877 = $504,877

d. If the project's cost of capital is 12%, should the machine be purchased?

This can be determined from the net present value (NPV) calculated as follows:

NPV = -$984,000 + ($306,159/1.12^1) + ($332,986/1.12^2) + ($261,479/1.12^3) + ($504,877/1.12^3) = $100,287.71

Since the NPV of the machine of $100,287.71 is positive, the machine should be purchased.

7 0

3 years ago